Process Constraints on Strategic Capability Transfer During Acquisition Integration

By David B. Jemison
1986| Working Paper No. 914

This paper reports the results of an in-depth study of the acquisition integration process in seven acquisitions representing twelve firms. A grounded theory of acquisition integration is elaborated. Three constraints in the integration process are shown to limit the possibility of a successful acquisition outcome. These constraints (determinism, value destruction, and leadership misdirection) inhibit the transfer of strategic capabilities between firms after an acquisition and thus limit the chance that the acquisition can improve the firms competitive advantage.